If you currently have a savings program in place, or are planning to invest an amount in your RSP, use this tool to determine how much will be available for your retirement.
http://tools.tdcanadatrust.com/tdam-npc-ie/RSP_Contribution_Calculator.asp
Interesting results. Lets say you are 30 years old and finally decided to settle down and start saving for your retirement. Lets assume that you are not receiving any money from your company, only your RRSP and some money from the government (if you've lived and worked in Canada, you'll get around $6k of taxable income for old age and $11.5k max from CPP - roughly 30%, if you want to make $50k when you retire. See here for more details: http://www.servicecanada.gc.ca/eng/isp/common/cricinfo.shtml)
Current age: 30
Age of retirement: 65
Number of years until you die: 20 (85 - why not).
Annual income I would like: $50k
No money from company, 30% government and 70% from RRSPs
Current holdings: 0
Currently contributing: $500 (lets say)
Inflation: 3% (that's on paper - go into a grocery store and compare prices to just a year ago)
Rate of return: 5% (average)
The results show that I need: $2.4 million and my monthly contributions should be $1,400. At $500 a month for 35 years, I can only hope for $20k annual income at retirement.
